After Volkswagen Group disclosed its results on March 14, a closer look at the brands reveals a common pattern: higher revenue despite fewer cars sold. Seat S.A., formed by Seat and Cupra, reflects this trend for 2022 with an 18.1% drop in unit sales, delivering about 26,000 fewer vehicles—roughly double the decline seen by the German group. Yet turnover climbed by 13.8% to almost 10.5 billion euros, marking the second-highest level in the company’s history. Fewer sales, but better margins, translating into greater profits. This dynamics helped Seat return to profitability after years of pandemic-related declines, posting a net operating gain of 68 million euros after losing 256 million in 2021. Between 2015 and 2019, Seat SA enjoyed a stretch of its strongest five years on record.
Impulse Cupra, the Seat brand’s ambitious initiative, has long been understood within Seat as a strategic pivot—an evolution not just for the brand but for the entire industry. The arrival of Cupra strengthened a new trajectory where the original Seat brand gradually ceded momentum as Cupra emerged as the driving force. Just days ago, Oliver Blume, the chief executive of Volkswagen Group, urged patience regarding Seat’s future as the brand prepared Cupra’s Impulse project for public unveiling last July. Wayne Griffiths, chair of Seat and Cupra, stated plainly that Cupra’s turnover would outstrip Seat’s in 2023, underscoring a clear shift in the group’s business emphasis. The trajectory is underway.
Wayne Griffiths: “You don’t need to invent new measures to support the electric car”
In conversations about electrification, executives emphasize practical, scalable solutions rather than flashy measures. The focus is on delivering affordable, reliable electric mobility that can reach a broad audience across national markets. The push aligns with broader European goals to accelerate electrification while keeping existing assets productive and profitable. Within Seat and Cupra, the strategy centers on leveraging shared platforms, streamlined production, and targeted product differentiation to maintain healthy margins as the transition accelerates.
The future of Seat
Much has been discussed about Seat’s long-term path, especially as leadership shifts and portfolio decisions unfold. Oliver Blume, who has overseen consolidation at the group level, and Herbert Diess, who helped reshape the company’s approach, have influenced new directions for the Spanish brand. Diess’s influence on resource allocation would have shaped Seat differently, but the present strategy prioritizes a controlled electrification program and careful rationalization of projects that ensure profitability with the current product lineup. The brand’s plan suggests extending production of core models for a few more years while gradually introducing electrified variants that align with market demand and regulatory conditions.
Expansion of models like Leon, Ibiza, and Arona will continue, aided by Europe-wide regulatory shifts concerning internal combustion engines. Matías Carneno, chair of Seat’s corporate committee, remarked that production at Martorell could slow or shift timelines from 2029 onward, depending on regulatory and market developments. In interviews and strategic briefings, executives have signaled that Seat will evolve into a mobility-focused brand within the group, expanding into two-wheeled electric options like motorcycles and scooters, alongside a compact electric car. A project arising from the Catalan developer Acciona, known as the S04, is slated to reach the market later this year, signaling Seat’s broader electrification push. Griffiths recently noted that Seat will persist in transforming as a company, anchored by two well-positioned brands that cover wheeled and four-wheeled mobility. The global footprint remains a challenge, with Cupra already established as the more international brand, while Seat continues to pursue a clear, mobility-centered identity. Bold decisions are necessary to meet evolving consumer expectations and regulatory demands.
As for the most anticipated model from Martorell, Cupra UrbanAsi, delays in battery supply and certification are expected to push market entry out by about six months. While originally targeted for 2025, launch is more likely in 2026. Construction milestones for the Volkswagen Group and PowerCo’s Gigafactory in Sagunt (Valencia) were recently reached, signaling a broader push to secure local battery supply for Spain-produced models in Martorell and Navarra’s Landaben. Delays in cell production could necessitate imports from existing facilities in Germany, such as the Salzgitter plant, underscoring the challenge of aligning supply with aggressive rollout timelines. The broader strategy remains to energize Seat’s portfolio with electrified lines and scalable mobility solutions that align with the group’s electrification objectives and regional market realities.